USD/JPY hovers around strong trendline support at 108.40, we see weakness on break below.
Technical studies are biased lower, RSI and stochs point south and we see -ve DMI dominance.
Price action is below daily cloud and major moving averages and recovery seems to be capped at 5-DMA.
Break below 108.40 will see test of 108 levels ahead of 107.31 (Sept 8 low).
On the flipside, close above 5-DMA could see test of 20-DMA at 109.52. Break at 20-DMA could invalidate bearish bias.
Focus now will be on the US inflation report due to be released on Wednesday at 13:30 GMT .